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The options market never fails to humble even the most prepared investor. July 2025 was a case study in that lesson for me. What began as a stable income strategy through covered calls on NVIDIA and SoFi turned into a complete pivot due to unexpected market strength. In this blog post, I’ll walk through what I did, what I learned, and how I adjusted my approach using put options on NVIDIA, SoFi, Palantir (PLTR), and AMD to continue generating income.
Setting the Stage: My Initial Outlook
Back in late spring, my market outlook was cautious. There was rising uncertainty around U.S.-China trade relations, particularly in the tech sector. The tariffs were stacking up, and headlines were dominated by threats of retaliation, increased import costs, and investor fear.
I expected that this macroeconomic pressure would weigh on the broader market — especially growth-heavy tech names like NVIDIA and speculative fintech plays like SoFi. With that in mind, I entered the summer months expecting a sideways or slightly bearish market.
That assumption guided my decision to execute a covered call strategy on all 8 of my NVIDIA contracts and all 4 of my SoFi contracts spread throughout May and July. Each contract would expired a week apart another. I figured it was the perfect time to milk some premium from these holdings while they traded within a tight range.
Covered Call Strategy Explained (and Why I Used It)
For those unfamiliar, a covered call involves selling a call option on a stock you already own. In return for the option premium, you’re giving someone else the right to buy your stock at a certain price (the strike price) by a specific date (the expiration).
It’s a conservative strategy that generates income, especially when:
- The stock is expected to stay flat or decline slightly.
- You’re comfortable selling at the strike price.
- You want to reduce downside risk with a cushion from the premium received.
In May and June, I used this strategy on NVIDIA (8 contracts) and SoFi (4 contracts). My average strike prices were set slightly above their recent trading ranges:
- NVIDIA: Strike prices ranged from $120 to $130.
- SoFi: Strike prices ranged from $13 to $16.
The Market Turn: When Everything Got Called Away
In hindsight, this is where I underestimated market momentum. Despite all the noise around tariffs and macro headwinds, institutional buying and strong earnings sentiment began driving tech stocks higher.
NVIDIA blew past my strike prices in April after a stellar earnings report and increased AI hardware demand. All 8 contracts were assigned by late May to July — locking in gains, sure, but cutting short my upside exposure. My shares were called away.
SoFi followed a similar path, rallying on renewed fintech optimism and increased user growth. All 4 of my covered calls executed in June and early July. Once again, I was left with cash and no position — and a front-row seat watching these stocks keep rising.
While I did collect decent premiums and gains on the shares themselves, it felt like I left money on the table — the perennial covered call dilemma. That’s when I realized it was time to adapt.
Pivoting Strategy: Income from Cash-Secured Puts
With my shares called away and the market refusing to pull back, I had two options:
- Chase the stocks higher and re-enter at elevated prices.
- Wait for a pullback and generate income in the meantime.
I chose the latter. To continue generating cash flow while potentially reacquiring shares at better prices, I switched gears to a cash-secured put strategy on:
- NVIDIA
- SoFi
- Palantir (PLTR)
- AMD
Why Put Options?
Selling a cash-secured put means you’re giving someone the right to sell you shares at a specific price — and you’re setting aside the cash in case it happens. If the stock stays above the strike, you keep the premium. If it drops, you get assigned the shares — but at a discount (effectively strike minus premium).
This was the perfect fit for my July market environment:
- I still believed in the long-term potential of all four companies.
- I didn’t want to buy back in at elevated prices.
- I could generate steady income while waiting for potential re-entry points.
Put Options Deployed in July
Here’s how I structured my trades:
NVIDIA (NVDA)
- Strike: $145
- Expiry: August 15
- Premium received: ~$2.89 per contract
- Outcome: Stock stays above $145; puts expired worthless; I kept full premium.
SoFi (SOFI)
- Strike: $13 to $17
- Expiry: August 15 and 22
- Premium received: ~$0.33 per contract
- Outcome: Stock stays above $17; puts expired worthless; premium collected.
Palantir (PLTR)
- Strike: $120 & 121
- Expiry: August 8 and 22
- Premium received: ~$3.11 per contract
- Outcome: Stock stays above $121; puts expired worthless.
AMD
- Strike: $145 & 180
- Expiry: August 1, 8, 22, 29
- Premium received: ~$3.09 per contract
- Outcome: Stock stays above strike price; puts expired worthless.
Total Income Generated in July (Premiums Only)
| Ticker | Contracts | Premium per Contract | Total Income |
|---|---|---|---|
| NVDA | 1 | $289 | $289 |
| SOFI | 3 | $33* | $100 |
| PLTR | 2 | $311* | $622 |
| AMD | 4 | $309* | $1,237 |
| Total | — | — | $2,248 |
This $2,248 of passive income helped offset the opportunity cost of missing out on some additional upside in my original positions. And importantly, I positioned myself to re-enter those stocks at more reasonable levels if the market cooled.
Lessons Learned
1. The Market Doesn’t Care About My Narrative
I was certain that tariffs and macro pressure would weigh on tech. But markets don’t always behave rationally — especially when AI momentum is in full swing. Strong earnings and institutional appetite can outweigh geopolitical fear.
2. Covered Calls Are Great — Until They’re Not
Covered calls gave me predictable income but capped my upside. I had to accept that I was essentially selling potential profits in exchange for short-term cash flow.
3. Cash-Secured Puts Are My New Best Friend
I love this strategy for bullish names I want to own. It offers a “get paid to wait” framework that aligns perfectly with my long-term investing style.
4. Flexibility Is Key
Had I been rigid in my approach, I might’ve sat on the sidelines watching my favorite stocks moon without any participation. Instead, I shifted gears and kept the income machine running.
What’s Next for August 2025?
As we enter August, I’m watching for signs of exhaustion in tech. If NVIDIA or AMD pull back below strike price, I’ll consider getting assigned on some puts and reloading long positions. If not, I’ll continue using short-dated, out-of-the-money puts to collect premiums.
For SoFi and PLTR, I’m open to selling puts deeper in-the-money if volatility increases — possibly using them as core holdings again if prices dip.
I recently started two new stocks NU (Banking) and NVTS (Semi-conductors) based on a youtuber explaining how there is so much potential for these stocks. I ended up doing some put options in the hopes I will get them at a lower price and to generate some income in the mean time.
Final Thoughts
My July 2025 option trading journey reinforced the importance of adaptability. What started as a textbook covered call income plan transformed into a nimble cash-secured put strategy when the market shifted against my assumptions.
Ultimately, I didn’t beat the market — but I did beat paralysis. And I generated over $2,000 in income while doing it.
That’s a win in my book.
